ISIN CODE INF846K01EH3
Overall analysis
3-yr rolling excess returns is in negative which is not good for the past few years and tracking error against benchmark has been very active overall; but the funds’ performance in the short run has been deteriorating. The fund has given the maximum excess return in comparison to its peers; but has dropped to below the upper quartile over the past 1 year.
Performance analysis
Rolling returns in quartiles
The rolling return chart shows excess 3-year annualised returns in context of peer return quartiles. The blue line’s time above the third green median line indicates the fund’s better than median performance.
The fund rolling return chart shows that the fund at the start was performing low but after Aug 2018 the fund crossed the third green median line which indicates the fund has given better performance than median performance. The fund’s maximum rolling return is 13.46% and the minimum rolling return is -9.24%.
Rolling risk/return (Snail-trail)
The rolling risk/return chart shows excess 3-year annualised returns relative to the index. The top left quadrant would indicate higher returns with lower volatility than index.
Initially the fund has underperformed benchmark with relative high risk but after Dec 2018 the fund has outperformed the benchmark with relative lower risk.
Tracking error
The tracking error chart shows how the fund ‘tracks’ against the index. The higher the TE, the more active the fund’s return has been, with the 2-4% range considered to be barely active, 4-6% range considered to be reasonably active and anything higher attributed to concentrated/focused funds. Funds with TE of less than 2% can be considered to be closet indexers.
The TE of the fund is good from the start which was around 4-6% and still it is around 4-6% range.
Information ratio
The information ratio is a measure of ‘risk-adjusted return’ as it’s the excess return per unit of excess volatility. Active funds should have IR of higher than 1, ideally higher than 1.3 at least to indicate skill.
The information ratio of the fund was low at the start but after Jun 2018 it has gone up to 2.9 but again it has come down to -4.1 in Mar 2021 which is not ideal.
Portfolio analysis
Stock style chart
Morningstar’s stock style chart shows the ‘style’ of the stocks in the portfolio in terms of size and value/growth style. The centroid shows the weighted average while the zone circle shows how varied the stock styles are.
The stock style chart shows that the fund is typically a Large Cap growth fund.
Factor profile chart
Morningstar’s factor profile shows the historical style analysis of the stocks in the portfolio in terms of size, value/growth style and other key factors. The blue circle shows the fund relative to the black dot for the category average.
The factor profile chart shows that the fund is more on the growth side,yield of the fund is low, momentum of the fund is high, and currently higher than the category average,quality is high,volatility of the fund is very low,liquidity of the fund is also low and size is around the small side.
Prepared by Bhavesh Mahajan, Aug 2023
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